Coercive Isomorphism Research Articles

EXPLORING THE CAUSES OF ACCOUNTING RESISTANCE IN MSME’s THROUGH MULTI STAKEHOLDER PERSPECTIVE

Micro, small, and medium enterprises (MSMEs) play a pivotal role in Indonesia’s economy, contributing to economic growth and job creation. However, these businesses often face challenges related to financial reporting. Without proper accounting practices, MSMEs lack clarity regarding their profitability and overall business development. Previous research highlights the unpreparedness of MSME actors as a significant barrier to implementing accounting standards (SAK EMKM). This study investigates the relevance of SAK EMKM for MSMEs by exploring stakeholder perspectives. Data were collected through Focus Group Discussions (FGDs) involving participants from various sectors, including PLUT, DJP Nusa Tenggara, conventional and sharia banking institutions, MSME representatives, and educational accountants. The research reveals that the bargaining value between MSMEs and stakeholders is crucial for accounting adoption. When stakeholders exert stronger influence, coercive isomorphism encourages MSMEs to adopt accounting systems. Conversely, if MSMEs perceive their bargaining power as higher, coercive approaches are less effective. Policy makers and decision makers must actively support an enabling environment for MSMEs, emphasizing the importance of accounting information. By doing so, Indonesia can enhance financial transparency, promote sustainable growth, and empower its vital MSME sector.

Policy framework for integrating data interoperability at public hospitals in South Africa

The implementation of data interoperability in healthcare relies heavily on policy frameworks. However, many hospitals across South Africa are struggling to integrate data interoperability between systems, due to insufficient policy frameworks. There is a notable awareness that existing policies do not provide clear actionable direction for interoperability implementation in hospitals. This study aims to develop a policy framework for integrating data interoperability in public hospitals in Gauteng Province, South Africa. The study employed a conceptual framework grounded in institutional theory, which provided a lens to understand policies for interoperability. This study employed a convergence mixed method research design. Data were collected through an online questionnaire and semi-structured interviews. The study comprised 144 clinical and administrative personnel and 16 managers. Data were analyzed through descriptive and thematic analysis. The results show evidence of coercive isomorphism that public hospitals lack cohesive policies that facilitate data interoperability. Key barriers to establishing policy framework include inadequate funding, ambiguous guidelines, weak governance, and conflicting interests among stakeholders. The study developed a policy to facilitate the integration of data interoperability in hospitals. This study underscores the critical need for the South African government, legislators, practitioners, and policymakers to consult and involve external stakeholders in the policy-making processes.

Impact of Institutional Isomorphism on Gender Diversity on the Boards of Sport Organizations in Japan

This study utilized institutional theory to examine how the Governance Code implemented in Japan in 2019 increased the number of female board members in national sport federations (NF) recognized by the Japanese Olympic Committee (JOC). Using the three mechanisms of antecedents that lead to changes in institutional isomorphism as a framework (coercive isomorphism, mimetic processes, and normative pressures), we conducted semi-structured interviews with board members of sport organizations and analyzed the obtained data using thematic analysis. The results revealed institutional isomorphism influenced gender diversity on NF boards and identified the mechanisms that promote gender diversity on the boards of sport organizations.

World-class education for the few: Analysing Japan’s designated national university corporation system policy discourse

This study explores the production, dissemination, and reception of the discourse of educational excellence and internationalisation in Japan’s Designated National University Corporation System. The study frames the policy initiative within the longstanding goals of the Japanese government and demonstrates how the work of Michel Foucault helps uncover the policy’s inherent power dynamics and ideological conflicts. The investigation operationalises Foucault’s theories with a framework to investigate the policy discourse, illuminating the central concern as global competitiveness and an imposition of rigorous criteria for designation. The analysis uncovers a coercive isomorphism, with universities replicating the government’s discourse. Furthermore, the focus on global competitiveness and rankings in the policy comes at the expense of facilitating other forms of internationalisation. More comprehensive reforms are recommended to foster authentic global engagement and inclusivity across a broader base of higher education institutions, rather than focussing on an increasingly thinner strata and the pursuit of global prestige.

Is bureaucracy ironclad after all? Prevalence and variances of performance- and strategy-oriented management in German local governments

This study analyzes practices of performance management (PM) and strategic management (SM) and their prevalence in Neo-Weberian rule-of-law administrations. Based on data from Germany's local government sector, it is shown that after 30 years of New Public Management (NPM) reforms, no more than 20% of German municipalities have implemented the basic aspects of PM or SM. Actual practices combine ideas of PM and SM in quite different ways and can best be understood as variances of a performance- and strategy-oriented management. It is argued that even though patterns of normative as well as coercive isomorphism have existed in the organizational field, the influence of NPM ideas has led to a diversification of management practices within Germany's local government sector. But results also show that there is no tendency toward a broadly NPM-oriented administration and that typical models of Neo-Weberian administration do not truly align with actual practices. Points for practitioners The use of performance information and strategic goals are important management instruments for public organizations. This study shows that in public administrations adhering to more bureaucratic rule-of-law traditions, actual management practices combine aspects of PM and SM in various ways, often not aligning with the recommendations from the advisory literature. The presented insights may help practitioners to better understand the efforts and benefits of these management practices, as well as the trade-offs between them.

The effect of debt intensity on the asymmetric cost behavior: empirical evidence from local governments

PurposeThis study explores the relationship between debt intensity and cost stickiness at the local government level, a setting characterized by the existence of debt constraints and political influence.Design/methodology/approachBuilding on a theoretical framework informed by the concepts of coercive isomorphism and accountability, the present study focuses on Greek municipalities and applies Anderson et al.’s (2003) extended methodology, as reviewed by Banker and Byzalov (2014), in a sample of 1,366 municipality year observations for the period 2011–2020.FindingsThe results indicate that the degree of cost asymmetry is negatively associated with debt intensity. Periods before elections present the same picture. This negative relationship becomes insignificant in the case of large municipalities, which probably require more resources to support their operations and incur higher adjustment costs for reducing resources. These findings are robust to use alternative types of expenses associated with cost stickiness and a battery of control variables.Originality/valueLittle is known about the impact of debt level and financial constraints on cost behavior in the public sector context. This study takes a fresh look at the relationship between municipal debt structure and cost stickiness, adding to the understanding of cost behavior considering the debt level, financial constraints, resource-adjustment costs and the underlying managerial behavior.

Coercive Isomorphism in Bureaucratic Reform in Tanimbar Islands Regency

The Tanimbar Islands Regency has several contradictions with the idea of bureaucratic reform designed by the state, leading to coercive isomorphism in organizational changes due to external pressures. This study employs a qualitative approach with a case study method, gathering data through interviews and document studies. The results indicate that: first, institutional reform will only succeed if there is fairness in resource distribution, both in budget and infrastructure, and if political intervention is minimized to enhance the independence of the existing structures, both regional and functional. This independence can only be achieved by strengthening the capacity of the apparatus in structured performance management based on measurable goal achievements. Second, governance system improvements will not be effective without reforming the mentality of the officials, as improving mentality can maximize compliance with policies and procedures, reducing compromises and formalities in the bureaucracy. Third, in a coercive environment, local governments adjust the qualifications of officials merely to meet the demands of professional image and formality. Fourth, an orientation towards practical politics affects the non-simultaneous bureaucratic reform process and hinders inter-agency coordination.

Application of ISAK 35 to the Presentation of Financial Reports of the Manado Diocese of the Catholic Church

This study aims to determine the existing forms of financial reporting and to find out stages, impacts and driving factors of the process of implementing ISAK 35 on the presentation of financial reports of the Manado Diocese of the Catholic Church based on the institutional theory of the form of coercive isomorphism and the Edward III model theory, namely communication, resources, disposition, bureaucratic structure. This study uses the method descriptive qualitative where data collection was carried out by means of interviews and documentation studies. The results show that the policy for implementing financial accounting information systems is not yet fully in accordance with applicable accounting standards. The organization has not fully adhered to the standard of ISAK 35. Financial records are processed using existing financial applications. By the aspect of resources, the attitude of the implementers still shows that the implementers still have minimal/not yet adequate knowledge about the accounting system created and communication between implementing agents is not yet optimal. The indicators in the bureaucratic structure variable in the form of SOPs have been achieved well because in 2019 the Manado Diocese has created a Financial Guideline that must be implemented by every parish, although in practice it is not yet perfect. In its implementation, there are still obstacles from a practical perspective, such as human error, hardware weaknesses, software weaknesses and system weaknesses. Efforts to overcome obstacles include continuing to update applications that have been created based on the latest standards and providing regular training materials that are packaged easily so that the attitude of the application implementing agents themselves can accept the new policy and those responsible for parish finances must be wiser and adhere to diocesan policies to produce financial reports that are transparent, accountable, and trustworthy.

The forces of revenue recognition standard changes in a telecommunication company: A qualitative approach

Revenue recognition is one of the crucial key performance indicators for each organisation. The forces of the revenue recognition standard change may cause different experiences for organisations in many ways. Currently, the revenue recognition implementation method is different from what it was in the past. As a result, an organisation that goes through changes may have different experiences and approach problems differently. Organisational change may be triggered by external factors, such as government policies that specifically target a certain sector. Moreover, alterations in the criteria and protocols of regulatory entities might potentially initiate organisational change, in line with the coercive isomorphism of institutional theory. The objective of this study was to enhance comprehension of the forces influencing changes in revenue recognition standards within a telecommunications company by conducting an explanatory case study on a Malaysian telecommunications company. The semi-structured interviews were conducted to get better and more in-depth information on how the company handled the situation. This study found that external factors and regulatory regulations may significantly influence only a small part of an organisation, leading to changes in its operational structure and activities. These changes aim to improve performance, strengthen organisational stability, and promote improved financial reporting. The focus on the telecommunications industry may add to the body of knowledge concerning complex product-based industries. This study provides a foundation for further research into how such industries navigate regulatory changes and adapt their practices accordingly.

ACCOUNTING PRACTICE AND SUSTAINABILITY REPORTING IN INSTITUTIONAL THEORY PERSPECTIVE

This article documents and classifies sustainability accounting practices carried out by companies based on the frame of institutional theory. To achieve this goal, article writing is carried out based on reviews of articles published in various academic journals. The articles that were the object of the review were research papers that investigated the accounting implementation process and sustainability reporting in business entities. In the framework of institutional theory, the implementation of accounting and sustainability reporting by companies to date can be called a change (isomorphism) from conventional accounting practices. Based on the results of the research that has been done, the isomorphism can be further classified into three dimensions of the change process, namely (a) coercive isomorphism; (b) change through mimetic isomorphism; and (c) changes due to need or obligation (normative isomorphism). Thus, the results of the research show that not all of the accounting and sustainability reporting practices carried out by the company are based on the needs and obligations according to norms, but some are simply imitating or following along, some are even based on compulsion.

Reviewing executive remuneration decision-making and reporting: implications for theory and practice

PurposeThe purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.Design/methodology/approachThis qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.FindingsFurther regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.Practical implicationsReviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.Originality/valueThe authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.

The Monopoly of Economic Justice: Judges versus arbitrators

The article explores the relationships between state economic courts represented by judges and arbitration courts as a manifestation of the conflict between public and private justice. The consequences of changes in state policy after the arbitration reform of 2015–2017 are discussed. Firstly, through the lens of Bourdieu’s perspective, the key factors influencing the emergence of a negative attitude in the judicial environment towards private justice are analyzed. Secondly, the establishment of the specialization of a particular subgroup of judges from the appellate instance of arbitration courts, who year after year deal with cases related to arbitration courts, is examined. During the empirical part of the research and interviews with judges from the appellate instances, it was found that their primary reference point, in addition to the law and personal convictions, is the orientation towards the higher court — the Supreme Court of the Russian Federation, where one judge largely determines the courts’ policy towards arbitration courts. Judges exhibit normative isomorphism, as similar experiences and practices prompt them to adopt similar strategies to protect their field from private justice. The article is the result of qualitative research based on interviews. Based on the assumption of the homogenization of the judicial sphere and judges’ defensive tactics to protect their field from external, private courts using institutional analysis and Bourdieu’s theories of fields and capital, the conclusion is drawn that judges of state courts tend to accumulate symbolic capital. This allows them to act as the only possible interpreters of legal norms — monopolists of justice. Through the lens of isomorphism theory, the conclusion is drawn that state courts implement the practice of coercive isomorphism, which has no other goals except forcing private courts to mimic state courts.

Corporate ethical values disclosure: evidence from Malaysian and Indonesian top companies

PurposeThis paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under the institutional theory.Design/methodology/approachUsing the content analysis, the presence or exclusion of ethical values information disclosed on 100 Malaysian and Indonesian companies’ annual reports using a newly developed Ethical Values Disclosure Index is carried out.FindingsThe results of the analysis found that Indonesian companies on average disclosed 31 items under study compared to 27 items disclosed by the companies in Malaysia. The results suggest that Indonesian companies are more vigilant in the code of ethics, companies policy on ethical issues, monitoring program and accountability, ethical performance, ethical infrastructure and organizational responsibility aspects, whereas their Malaysian counterparts are better in reporting governance and integrity committee or board of directors.Research limitations/implicationsThe findings may not be applicable to other countries in the same region, nevertheless, revealed the importance of adequate ethical values disclosure in determining the level of ethical behavior.Practical implicationsCompanies in Indonesia are coercively pressed by various influential stakeholder groups to address ethical issues. The less disclosure regarding corporate ethical behavior may indicate that unethical practices continue to be a problem in the Malaysian corporate sector.Originality/valueThis paper adds to the literature by examining the elements of ethical values adapted mainly from the professional bodies that regulate the accounting profession and other organizations using the institutional theory, particularly in two countries.

Regulation, governance and organisational issues in European Railway Regulation Authorities

Regulation, governance and organisational issues are sensitive aspects in the market of public utilities especially when these markets require and aim at initiating homogenisation processes.The paper aims at understanding how European countries responded to supranational legislation, in terms of governance, management and organisational aspects, on the establishment of Railway Regulatory Bodies and if the steps taken by the European Union were sufficient to fulfil the aim of creating an integrated railway area.We use a neo-institutional lens to interpret documentary sources, such as regulatory sources (Regulations, circulars and directives of the EU) and the responses given to a semi-structured questionnaire submitted to the 28 European Railway Regulatory Authorities.The paper shows that this regulatory field faced differentiated isomorphism and that there is a growing trend towards an organisational model we characterised as ‘Generalist Agency’.We contribute to the literature on the regulation of public utilities, showing that differentiated isomorphism may occur when coercive isomorphism by supranational legislation is mitigated by national differences, and provide policy implications on governance and regulation of the transport industry.

Isomorphism Framework with Scenario Planning in Installing Lembang Fault Earthquake Disaster Information Board Signs

Installing disaster signs and information boards in disaster-prone areas is one form of effort to improve disaster preparedness and mitigation through disaster education for people in disaster-prone areas. This study aims to analyze the form of DiMaggio and Powell Isomorphism in the installation of signs and information boards for the Lembang Fault earthquake disaster and provide recommendations for the installation of signs and disaster information boards at the West Bandung Regency Regional Disaster Management Agency (BPBD KBB). The consideration of case selection is based on the high Indonesia Disaster Risk Index (IRBI) in 2022 in West Bandung Regency, reaching 14.74 (high risk for earthquakes). The research methodology uses a descriptive qualitative approach with case studies on BPBD KBB as coordinators in disaster management in the regions. Data collection techniques involve literature study and in-depth interviews. The results showed that the installation of signs and information boards was influenced by normative coercive Isomorphism. The implications of this study include practical recommendations for improving strategies for installing signs and information boards to improve the effectiveness of disaster mitigation in the region.

Exploring the effectiveness of the coordinated individual plan in Sweden: challenges and opportunities for collaborative care

ABSTRACT The increasing specialization and differentiation within welfare organizations in Sweden and internationally have, due to fragmentation and inflexible boundaries, resulted in ineffective care for users. In order to improve care, the Coordinated Individual Plan (CIP) was introduced by the government in Sweden in 2009, with the aim of improving collaboration between social service and health care. Persons with concomitant mental health problems and substance abuse were one of the target groups. Earlier studies by the authors indicate that CIP has had limited impact. Use of CIP has been unsystematic and the user/patient’s role less central than expected. This study investigates what can contribute to these findings, based on professionals’ experience of their participation in CIP. Interviews were conducted with 20 professionals in the social service and health care sectors and analysed by qualitative content analysis, using the theoretical perspectives of institutional isomorphism. Findings indicate that, while the professionals were positive about the idea of CIP to improve the situation for the individual user/patient, coercive isomorphism in the form of CIP also led to a more confrontational view of collaboration which does not necessarily solve problems for the individual. Organizational and professional perspectives were cited, which can be linked to issues of organizational uncertainty. The study confirms earlier findings indicating that a stronger, team-based model is needed, with development based on professional experience, as the coercive aspect tends to take precedence over professional activities connected to mimetic and normative isomorphism.

Disaster-driven climate adaptation: bringing institutions in

Previous scholarship broadly emphasizes weather disasters as threshold events to instigate climate adaptation. This study goes beyond the disaster-adaptation nexus by investigating its institutional conditionality. Drawing on the theory of institutional isomorphism, we examine how disasters interact with three isomorphic institutions – coercive, mimetic and normative – to influence cities' adaptation to climate change. Using survey data on California cities in 2013–2014, 2017 and 2018, the findings suggest that cities predominantly take reactive and top-town approaches to climate adaptation, with coercive isomorphism being the main driver of their adaptation efforts. Meanwhile, the three isomorphic forces differentially condition the impacts of disasters on adaptation: both coercive and mimetic pressures produce a diminishing marginal effect as the frequency of disasters surpasses a certain threshold, whereas normative pressure exhibits a positive and reinforcing marginal effect as disaster exposure goes up. We conclude with practical implications associated with the boundary conditions of disaster-driven adaptation, adaptation policy design as well as entry points to bottom-up adaptation initiatives.

Institutional isomorphism in corporate Twitter discourse on citizenship and immigration in India and the United States

AbstractHigh net‐worth individuals (HNIs) play important roles in influencing policy through their voices. Technology‐mediated means of addressing issues, such as social media activism, have become a central part of such policy advocacy. We examined the Twitter engagement of the 50 wealthiest individuals and their ‘networks’ in India and the United States, specifically their engagement with citizens' movements and policy issues related to citizenship and immigration, with a focus on debates triggered by the enactment of the Citizenship Amendment Act (CAA) and rescission of Deferred Action for Childhood Arrivals (DACA), respectively. We quantified the level of engagement of ‘HNI networks’ with these debates through a textual analysis of their tweets using computational methods combined with manual annotation, followed by qualitative analysis and comparison of subjective meanings attached by actors to key terms. We found that American HNIs leveraged their social media presence to advocate for inclusive immigration and naturalisation policies, their model of advocacy characterised by confrontation, collective action and ownership by key actors, thus exhibiting mimetic isomorphism. Indian HNIs' tweets on CAA were few and far between, with no call for change and no evidence of either collective action or individual ownership, and a hesitation to challenge the central government, thus exhibiting coercive isomorphism.

Tax Incentives During the Covid-19 Pandemic From The Perspective Of Functional Tax Disseminators

Tax incentives have been provided to taxpayers impacted by the Covid-19 pandemic. The initial implementation of this tax incentive program was suboptimal, one contributing factor being inadequate dissemination of information. However, with the introduction of tax disseminators, the realization of tax incentives has improved. Drawing on role theory and institutional theory, this study seeks to understand the experiences of informants in optimizing tax incentives and their interpretations thereof. A phenomenological method is employed in this research, and data were analyzed using Interpretative Phenomenological Analysis (IPA). The findings reveal that a majority of the informants experienced satisfaction and pride in optimizing tax incentives. These feelings stem from the informants' understanding of their role in implementing tax incentives. The institutional environment shapes the responsibilities and workload of a tax disseminator. Coercive isomorphism arises as all regulations and dissemination guidelines are issued by the Head Office.
 Keywords: tax incentive, tax disseminator, role theory, institutional theory

Institutional Homogenization through McDonaldization in the Digital-Based Minimum Service Standards Reporting System (e-monev SPM)

Digital-based governance transformation is needed to respond to dynamic global challenges. This article aims to analyze institutional isomorphism through Mcdonaldization in a digital-based minimum service standard reporting system (e-monev SPM). Various studies show that governance needs to be dynamic, collaborative and innovative to achieve an efficient system by utilizing technological developments. In contrast to previous studies, this article argues that the transformation of governance in the reporting system for the implementation of digital-based Minimum Service Standards (e-monev SPM) indicates the occurrence of McDonaldization which is characterized by changes in rationality as a feature of modern society by utilizing technological developments that lead to the occurrence of institutional homogenization. This article uses a qualitative approach with multiple methods. Data were obtained from in-depth interviews, literature studies, secondary data, official documents and digital data. The findings of the data show the occurrence of McDonaldization in 4 (four) dimensions, namely Efficiency seen from changes in reporting mechanisms and speed, Calculability seen from the ability to be used periodically for interested parties, Predictability seen from content standardization and reporting time, and Control seen from e -monev as a digital-based tool to ensure regional compliance in reporting. The institutional homogenization efforts are indicated by the occurrence of Coercive Isomorphism related to the implementation of mandates regarding changes in the reporting system, Mimetic Isomorphism which is shown through the adoption of technology in the reporting system, and Normative Isomorphism which can be seen from organizational professionalization efforts related to increasing human resource capacity, facilities and infrastructure, cooperation, and budget. However, there is also an irrational dimension of McDonaldization rationality, which is related to the readiness of infrastructure and human resources. This article contributes to efforts to improve the quality of governance by utilizing technological developments through a digital-based reporting system .